Page 14 - School Finance Manual 2021-22

Budget Formula Construction cont. 14

Budget Balance Carryforward Registered Warrants
A district may carry forward any unused M&O budget Districts may budget for interest expenses for regis-
balance. None of this carry forward can be attributable tering warrants or net interest expense for tax anticipa-
to required reductions such as tuition revenue budgeted tion notes (TANS) incurred in the fiscal year two years
and not received or expenditures for the debt service prior to the budget year. This applies if the county trea-
portion of the cost of tuition. Authorization for this addi- surer pooled all district monies for investment and the
tion is found in A.R.S. §15-943.01. district applied for early payments of their state aid
apportionment or the district was not eligible for state
A district may also carryforward any unused District aid. A.R.S. §15-910.N
Additional Assistance Fund budget plus interest earned
for the prior fiscal year. Interest earnings from the prior Tuition Out Debt Service
year may not be used to increase the M&O budget. Districts may budget the bond issues portion of the cost of
tuition charged to the district as provided in A.R.S. §15-824
Desegregation Costs for pupils attending school in another school district. A.R.S
Additional budget capacity for a district to comply §15-910 L. This increase is made only to the M&O Fund.
with or continue to implement activities relating to a
court ordered desegregation or administrative agree- Dropout Prevention Programs
ment with the United States Department of Education School districts which participated in the dropout
Office for Civil Rights is allowed under A.R.S. §15-910. prevention program as originally established pursuant
A district qualifying and choosing to budget for these to laws 1987, Chapter 333 and continued by Laws 1990,
expenses may budget both maintenance and operation Chapter 399, may continue to budget for the dropout
and capital outlay funds outside of the RCL and DAA. prevention program in an amount not to exceed the
A separate desegregation budget must be prepared amount budgeted in fiscal year 1990-1991 (Laws 1992,
on forms prescribed by the Superintendent of Public Chapter 305, Section 32). Expenditures for programs
Instruction. This additional funding is paid by a local tax serving grades 4 through 12 are allowed.
levy.
Career and Technical Education and
Equalization assistance is not provided by the State Vocational Education Center
or county for these costs. Current law has capped
the desegregation budget for 2009-10 and each year Districts that have entered into an intergovernmental
thereafter at the amount budgeted for desegregation agreement to establish a jointly owned and oper-
expenses in fiscal year 2008-09. ated career and technical education and vocational
education center as provided in A.R.S. §15-789, may
Small School District Exemption budget for vocational maintenance and operation
School districts that have a student count of 125 or expenses which are specifically exempt, in whole or in
part, from the revenue control limit for a period of not
fewer students in grades K-8 or 100 or fewer students to exceed three years, beginning the first year that the
in grades 9-12 may adopt a budget in excess of their career and technical education and vocational educa-
normal calculated budget limit. Districts that utilize this tion center is operating. (A.R.S. §15-910.01)
provision are allowed to add any needed dollars at the
time the budget is proposed (A.R.S. §15-949). This
additional funding is paid by a local tax levy.

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